Little change for FTSE
The London market experienced a reversal of fortune during afternoon trading today as commodity stocks weighed on blue chips.
The FTSE 100 Index managed to cling to the 6,500 mark, closing down 5.8 points at 6500.4, after the US dollar rallied against several foreign currencies, making dollar-dominated commodities less of a bargain.
Meanwhile a choppy opening on Wall Street as US pending home sales fell to their lowest level in more than six years also added to the downturn on this side of the Atlantic.
A fall in the cost of gold saw miners on the back foot, helping to wipe out gains from earlier in the session following a strong set of half year results from Tesco.
Lonmin was the biggest loser, topping the fallers' board with a near-6% drop, or 205p to 3499p, while BHP Billiton was 80p lower at 1735p.
The cost of light, sweet crude retreated below the 80 US dollar mark to see Royal Dutch Shell fall 58p to 1968p, while BG Group slipped 33p to 820.5p.
B&Q owner Kingfisher was the top Footsie riser with gains of more than 7% as brokers at Cazenove upgraded UK retailers. Market sentiment has weakened following recent hikes in interest rates, but Cazenove believes the sector is now looking cheap.
Kingfisher moved 13.5p ahead to 196.1p, while Argos owner Home Retail Group was also up 18.75p at 407.5p. Fashion retailer Next was ahead 68p at 2051p.
Supermarket chain Tesco rose more than 6% - or 27.5p - to 463p after better than expected half-year profits of £1.32bn (€1.9bn).
Like-for-like sales slowed to 3.5% in the summer downpours, but Tesco said trends picked up during August as the weather improved and pleased the City with reports of strong sales momentum.
Among banking stocks, mortgage lender Northern Rock advanced as rumours of an imminent private equity rescue swept the market. The crisis-hit stock tested new record lows earlier in the session but picked up 3.5p to 135.6p on reports the company was due to meet with would-be suitors this afternoon.
More positive sentiment helped the rest of the sector as brokers said the worst fears following the credit crunch may not materialise.
Halifax Bank of Scotland - seen as the best defensive stock - rose 39p to 950p, while Barclays was ahead 20.5p to 621p. Alliance & Leicester was 43p up at 822p.
Housebuilders also enjoyed a rebound as Taylor Wimpey lifted 13p to 288.75p, Persimmon rose 58.5p to 1051p and Barratt Developments gained 31.5p to 781p.
Satellite broadcaster BSkyB held firm, up 3.5p at 687.5p, despite the Competition Commission's preliminary findings that its 17.9% stake in ITV was against the public interest.
The biggest Footsie risers were Kingfisher up 13.5p at 196.1p, Tesco ahead 27.5p at 463p, Persimmon up 58.5p at 1051p and Alliance & Leicester ahead 43p at 822p.
The biggest Footsie fallers were Lonmin off 205p at 3499p, BHP Billiton down 80p at 1735p, BG Group off 33p at 820.5p and International Power down 14.75p at 441.5p.
